IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT, IN AND FOR PALM BEACH COUNTY, FLORIDA

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1 IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT, IN AND FOR PALM BEACH COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, PLAINTIFF, vs. CASE NO.: 2014-CA AMERICAN CHILDREN'S CANCER ASSOCIATION, a New Jersey Corporation registered to solicit charitable contributions in Florida, f/k/a Children's Cancer Society, Inc.; SHAUN HEUSEN, a/k/a Sharif "Shaun" Hussein, a/k/a Shaun Heussen, an individual; JOSEPH WAY, an individual; et al., DEFENDANTS. FINAL JUDGMENT AGAINST INDIVIDUAL DEFENDANTS SHAUN HEUSEN AND JOSEPH WAY On July 17, 2014, Plaintiff, Office of the Attorney General, Department Of Legal Affairs, State Of Florida, filed its Complaint in this matter. pursuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes. This Court has considered the Plaintifrs Motion for Final Partial Summary Judgment ("Motion") and supporting documents, as well as the entire record in this matter, and granted Plaintiffs Motion. Therefore, it is hereby ADJUDGED and ORDERED as follows: Judgment is entered in favor of Plaintiff, Office of the Attorney General, Department of Legal Affairs, State of Florida, ("Attorney General" or "Department") The Capitol, Tallahassee, Florida against Defendants Shaun Heusen at 1221 Orange Avenue, Cranford, New Jersey and Joseph Way at 152 Oldwick Road, Oldwick, New Jersey jointly and severally for restitution in the amount of Twenty-Two Thousand Seven Hundred and Twenty

2 Dollars ($22,720.00), for civil penalties in the amount of Seventy-Two Thousand Dollars ($72,000.00), and attorneys' fees and costs in the amount of Ninety-One Thousand Three Hundred and Sixty-Seven Dollars ($91,367.00), for which Jet execution issue. Wherefore, the Court finds that: Procedural Background On July 17, 2014, the Attorney General filed its Complaint in this matter, pursuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Pa11 II, Florida Statutes. On November 25, 2014, this Court entered the Consent Final Judgments as to Liability and Pern1anent Injunction ("Consent Judgment" or "Order") agreed to by Defendants Heusen and Way (" Defendants"). On August 18, 2015, the Attorney General filed its Motion for Final Partial Summary Judgment ("Motion"), which sought summary judgment on the issue of monetary relief. The Motion was initially scheduled for hearing on September 22, After hearing comments from all parties, this Court continued the hearing to permit the Defendants to file a response to the Attorney General' s Motion. The continued hearing on the Attorney General' s Motion was scheduled for December 22, The Defendants contacted the Attorney General to request that the hearing be rescheduled for another date so that the Defendants could properly file documents they had electronically mailed to the Defendants and the Court. The Attorney General did not object to this request and this Court reset the hearing for January 22, At the conclusion of the January 22, 2016 hearing, this Court granted the Attorney General's Motion and found that Defendants Heusen and Way are jointly and severally liable for 2

3 a total judgment amount of One Hundred Eighty-Six Thousand and Eighty-Seven Dollars ($ 186,087.00). Defendants Heusen and Way's Liability The following facts were alleged by the Attorney General in its Complaint and stipulated to by the l.ndividual Defendants in the Consent Judgment: The Defendants organized and formed the Florida Dream Home Raffle as a purported fu ndraising project for Defendant ACCA. Throughout the course of the Florida Dream Home Raffle program, the Individual Defendants repeatedly represented that consumers who purchased raffle tickets would be entered into a drawing for the Grand Prize consisting of either a "Florida Dream Home" valued at $2, 100,000 or a lump sum payment of $1,600,000, as well as additional prizes. Consumers were led to believe that, as entrants in the Florida Dream Home Raffle, they had an actual opportunity to win the luxury waterfront home. The Defendants, however, knew they did not own and did not have any binding legal rights to such a luxury home, and accordingly had no realistic ability to award such a raffle prize. Moreover, the Defendants had no intention of awarding any such Grand Prize unless a mi nimum of approximately 30,000 to 37,500 tickets were sold at a cost of $80 per ticket. The Defendants failed to conspicuously di sclose these facts to consumers of the Florida Dream Home Raffle in the raffle's advertisements, order fo rms and solicitations. Instead, the Defendants buried these details within five pages of dense, small-font text accessible through a small link at the bottom of the Florida Dream Home Raffle's webpage. Further, all consumers were required to purchase a ticket to be entered into the Florida Dream Home Raffle; such a requirement violates Florida law. The Defendants' knowledge of Florida' s prohibition against charitable organizations requiring raffle ticket purchases is evidenced by the Individual Defendants' inclusion of a disclaimer that provided "Eligible Ticket 3

4 Purchasers may purchase the $80.00 suggested donation (no purchase necessary)," which was buried within a link to the Florida Dream Home Raffle's website. The Consent Judgment agreed to by the Defendants constitutes a complete settlement on the issue of liability and establishes the Defendants' liability for violating FDUTPA, the Solicitation of Funds Act, Chapter 496, Florida Statutes and the Gambling Act, Chapter 849, Florida Statutes as alleged in the Attorney General' s Complaint. Monetary Relief In its order granting the Attorney General's Motion for Final Partial Summary Judgment, this Court previously found: Defendants Heusen and Way each agreed to the Consent Judgment, which established Defendants Heusen and Way' s individual liabil ity in this case. Accordingly, Defendants Heusen and Way are jointly and severally liable for consumer restitution in the amount of Twenty Two Thousand Seven Hundred and Twenty Dollars ($22,720.00). Pursuant to , Florida Statutes, any person or corporation willfully using a deceptive practice unlawful under Section "is liable for a civil penalty of not more than $10,000 for each such violation." , Florida Statutes. Willful violations occur when the person knew or should have known that his or her conduct was unfair or deceptive or prohibited by rule The allegations of the Attorney General's Complaint include charges that the Individual Defendants knew that ACCA and/or the Defendants acts and practices in connection with the Dream Home Raffle I) were prohibited by rule and 2) were unfair or deceptive. Accordingly, as a matter of law, Defendants Heusen and Way are jointly and severally liable for civil penalties. The civil penalty amount is Seventy-Two Thousand 4

5 Dollars ($ 72,000.00), which is approximately treble the amount of total revenue collected from consumers. FDUTPA provides that if civil penalties are assessed in any litigation, the enforcing authority is entitled to reasonable attorney's fees and costs , Florida Statutes. As a result of the imposition of the civil penalties discussed above, as a matter of law, Defendants Heusen and Way are jointly and severally liable for attorneys' fees and costs. The attorneys' fees and costs amount is Ninety-One Thousand Three Hundred and Sixty-Seven Dollars ($91,367.00). Based on the record evidence and the foregoing factual findings and conclusions of law, the Court exercises its equitable power and makes the fol lowing rulings: A. Judgment in the amount of Twenty Two Thousand Seven Hundred and Twenty Dollars ($22,720.00). is entered in favor of the Attornt:y General against Defendant Heusen and Defendant Way, jointly and severally, for consumer restitution, for which let execution issue forthwith. B. Judgment in the amount of Seventy-Two Thousand Dollars($ 72,000.00) is entered in favor of the Attorney General against Defendant Heusen and Defendant Way, jointly and severally, for civi l penalties, for which let execution issue forthwith. C. Judgment in the amount of Ninety-One Thousand Three Hundred and Sixty Scven Dollars ($91,367.00) is entered in favor of the Attorney General against Defendant Heusen and Defendant Way, jointly and severally, for attorneys' fees and costs, for which let execution issue forthwith. D. Within ten (I 0) business days of the date this order, the Individual Defendants Shaun Heusen and Joseph Way each are ORDERED to, prepare and deliver the 5

6 following documents to the Florida Office of the Attorney General, 110 S.E. 6th Street, Fort Lauderdale, Florida 3330 I: 1. a complete Credit Report Authorization and Release Form; 2. a complete Request for Transcript of Tax Return, IRS Form 4506-T, which shall identify the Florida Office of the Attorney General, 110 S.E. 6th Street, Fort Lauderdale, Florida 33301, as a thi rd party to which the transcript or tax information through the year 2018 should be mailed; 3. a complete Attorney General's Individual Financial Affidavit; and 4. a complete Fact Information Sheet, Form Florida Rules of Civil Procedure. ofl ORDERED, APPROVED and ENTERED in Palm Beach County, Florida on this i1l1,ctay By: 6

7 SERVICE LIST Kristen Pesicek Assistant Attorney General Office of the Attorney General I I 0 Southeast Sixth Street Fort Lauderdale, FL Kristen.Pesicek@myfloridalegal.com American Children's Cancer Association I 09 Brass Castle Road Washington, NJ ShaunHeusen@ gmail.com Shaun Heusen 1221 Orange A venue Cranford, NJ ShaunHeusen@gmail.com Joseph Way 152 O ldwick Road O ldwick, NJ JWay429@aol.com